Auditors’ Joint Engagements and Audit Quality: Evidence from Italian Private Companies

Bianchi, Pietro A.

doi:10.1111/1911-3846.12327

Cited by 56 publications

(32 citation statements)

References 104 publications

(231 reference statements)

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“…Furthermore, while extant studies have investigated the influence of auditing characteristics in terms of audit approach (Alfraih, 2016;Bianchi, 2018;Habib et al, 2019) as well as audit quality (Afify, 2009;Ashton et al, 1989;Bamber et al, 1993;Dao and Pham, 2014;Taktak and Mbarki, 2014), they have not considered auditing characteristics as mediating variables. Studies on audit approach vary, with some using joint audit and others using change of auditors (see Habib et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Board characteristics, auditing characteristics and audit report lag in African Central Banks

Chalu

2021

JAEE

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PurposeThe purpose of this paper is to examine the determinants of audit report lag in Sub-Saharan African Central Banks. In this case, the determinants were divided into two categories: independent variables and mediating variables. The independent variables, which were generated from board characteristics, included board size, board gender diversity, governor duality, audit committee size and audit committee meetings. The mediating variables were auditing characteristics and they comprised audit mandate, audit approach and audit quality.Design/methodology/approachThe study used data from 192 observations from African Central Banks' financial reports for the period 2000–2016. The data collected were analyzed using path analysis, whereby four regression models were run and tested simultaneously. From the analysis, the study determined total effects and then decomposed the total effects into direct and indirect effects.FindingsThe study results indicate that in the case of board characteristics, governor duality and audit committee size were found to have a positive influence on audit report lag. In the case of audit quality, only audit mandate was found to have a negative influence on audit quality in the Central Banks. However, the introduction of mediating variables increased the positive effect of governor duality and audit committee size, while also making board size and board gender diversity have a significant negative effect on audit report lag.Practical implicationsThe findings of this paper have implications for the practice and policy of the auditing and governance of Central Banks, which includes designing appropriate governance structures as well as proper auditing strategies.Originality/valueThis is the first study which has examined factors influencing audit report lag in Central Banks. Previous studies on Central Banks' governance have examined the independence and autonomy of the Central Banks, as well as their accounting. This paper extends prior studies by examining the effects of those factors. Another contribution is the study's application of auditing characteristics as mediating variables.

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Section: Introductionmentioning

confidence: 99%

Board characteristics, auditing characteristics and audit report lag in African Central Banks

Chalu

2021

JAEE

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“…There is also evidence that increased auditor concentration in local audit markets improve audit quality (Choi et al 2017). Other factors improving audit quality examined were identified as: enterprise system implementation (Pincus et al 2017); average education level (Beck et al 2018); joint engagements, facilitating knowledge transfer and auditor expertise (Chi et al 2017;Bianchi, 2018); city-industry specialists (Chen et al 2018); expert advice of higher quality (Wright and Bhattacharjee, 2018); reinforcing the image of auditors as independent to the investor community for the annual general meeting (Johed and Catasus, 2018). Finally, the empirical study conducted by Chen et al (2017) found that investors reduce private information collection in response to higher audit quality.…”

Section: Discussionmentioning

confidence: 99%

Auditing Research: A Review of Recent Research Advances

Cuzdriorean¹

2018

EJEF

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We survey recent auditing research published in top 5 leading accounting journals over the last two years (2017-2018). We use the recent findings as a roadmap aiming to offer useful suggestions for future research. Finally, we urge more research on topics related to: implications of social challenges facing audits of complex estimates, implications of contrast effect for audit quality, assessing the effects of conservative bias in audit work, examining the factors affecting accounting firms` competencies.

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“…The results of the study (Lobo et 2015;Bianchi, 2018) showed that the use of two auditors to conduct audit work was positively associated with higher profit quality as well as higher audit fees, lower financial statements, lower expenses, and timely recognition of economic losses.…”

Section: Optional Joint Review In Egyptmentioning

confidence: 99%

The Role Of Joint Review In Reducing Negative Profit Management Practices In Joint Stock Companies, Egypt

Wahba¹

2021

J. Organ. Behav. Res

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The review profession has recently faced a number of challenges, especially after the financial meltdowns experienced by many giants such as Enron. This was followed by the fall of one of the five largest audit offices, Arthur Anderson, for alleged involvement in the company's financial manipulations due to negative profit management practices, which raised many questions about the auditor's independence, the quality of audit performance and the underperformance of its programmers. This prompted scientific and professional organizations to look for methods and mechanisms through which such practices could be restricted, and the joint review is one of the mechanisms proposed by the European Commission in its 2010 Green Paper report, "Review Policy: Lessons from Crises", with the aim of improving the quality of the audit and supporting the independence of auditors. The joint review is based on the review of two or more independent audit offices reviewing the audit client's financial statements, preparing a single audit report and are jointly responsible for the information contained in the audit report and for undetected material errors. The goal of the research was to measure the impact of the application of the joint review on profit management by application to a sample of companies listed on the Egyptian stock market during the period (2016-2017), using discretionary entitlements as an indicator reflecting the negative profit management practices in the companies in question.

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Auditors’ Joint Engagements and Audit Quality: Evidence from Italian Private Companies

Cited by 56 publications

References 104 publications

Board characteristics, auditing characteristics and audit report lag in African Central Banks

Board characteristics, auditing characteristics and audit report lag in African Central Banks

Auditing Research: A Review of Recent Research Advances

The Role Of Joint Review In Reducing Negative Profit Management Practices In Joint Stock Companies, Egypt

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